What’s new: In brief (October 20, 2004)

Insurers are expected to tap the Florida Hurricane Catastrophe Fund for US$3 billion to reinsure losses from three major hurricanes which hit the state in August and September (losses from Hurricane Frances will not apply as they are below US$4.5 billion). However, insurers are upset by the announcement that Florida Insurance Commissioner Tom Gallagher is asking state legislators to increase their deductibles in a special sitting called by Governor Jeb Bush for early December. “Such a reaction is likely to bring about more disruption to an already fragile homeowner’s market in Florida,” says David Reddick, state affairs manager for the National Association of Mutual Insurance Cos. (NAMIC).

The New York Attorney General’s probe into insurance broker commissions has now extended into the life and health sector. Several insurers, including Cigna, MetLife Inc. and UnumProvident Corp. acknowledge they have received subpoenas to provide information relative to brokerage compensation. MetLife is the largest life insurer and UnumProvident the largest disability insurer in the U.S.

CGI is holding its annual client conference in Niagara Falls, November 17-19. This year’s theme will be “Ideas into Action” and focus on how the insurance industry can improve its image and rebuild public trust. For more information, contact Janice Tonelli-Breen at jtonelli@iao.ca.